Followup question; what constitutes a small UTXO? 100K sats? 1M sats?
What size of on-chain transactions do we expect to be making in the future, when on-chain activity is theoretically so robust that fee affordability is a serious/ongoing concern?
100K sats for a car? 1M sats for a house? How long until the average hodler begins to spend from the cold stack?
Anything less than 100k will be almost certainly unspendable L1. I would keep all UTXOs 500k+
The average hodler will probably be spending out of cold storage when 1BTC = 1 median home, but it’s important to remember that this is cyclical. Last cycle, lots of hodlers were spending when 1 BTC = 1 nice car, and the threshold for spending will always increase overtime.
Put into other words, you should always be able to trade 1 Bitcoin for more real goods over time.
